Pearce is out of contract at Reading in the summer, and he has yet to show willingness to sign a new deal at the Madejski Stadium.
The 24-year-old has reportedly attracted interest from several Premier League clubs, but it appears that Liverpool are in pole position to sign the Republic of Ireland international, according to the Daily Star.
Speaking on Pearce's contract situation, Reading boss Brian McDermott told reporters: "We will see where he will be in the summer. At this moment in time, nothing looks to be signed."
Pearce has made 15 Premier League appearances for Reading this season.